ShopBack, the renowned loyalty platform based in Singapore, has recently announced its decision to discontinue its 'Buy Now, Pay Later' (BNPL) service, PayLater. The company conveyed this news to its Singaporean customers via email, stating that the discontinuation will come into effect from Mar 22 2024, affecting both online and physical transactions.
Image: Entelechy Asia
The PayLater service was initially introduced following ShopBack's acquisition of BNPL player Hoolah in November 2021. Subsequently, it was rolled out in July 2022 to customers in Singapore and Malaysia. However, ShopBack has now disclosed its intention to terminate the service in both regions.
When questioned by The Business Times, ShopBack confirmed that the discontinuation of the PayLater service would also be applicable in Malaysia and this move aligns with ShopBack's periodic evaluation of its business units.
“Our decision to discontinue the PayLater feature in Singapore and Malaysia is driven by our strategic focus on sustainable business models with strong potential for growth,” the company stated.
The decision to discontinue PayLater adds ShopBack to the list of several other players in the BNPL space that have closed down in recent times. Pace, for instance, became the latest to shut its doors, filing for voluntary winding up in August 2023.
ShopBack's move reflects a broader trend in the industry, where companies are reevaluating their services and business models to ensure long-term sustainability and growth. As the BNPL landscape continues to evolve, such strategic adjustments are becoming increasingly common among players in the sector.
Image: Screenshot of Shopback email to all users
